SMIFS has recommended investors to subscribe to the issue, calling it a strong long-term investment opportunity backed by robust financial growth, capacity expansion, and a strong position in India’s fast-growing renewable energy ecosystem.
About the Company
Founded in 1994, Fujiyama Power Systems is a diversified clean energy manufacturer engaged in producing solar panels, inverters, and batteries under the UTL Solar and Fujiyama Solar brands. The company supplies over 522 solar product variants (SKUs) and offers complete solutions across off-grid, on-grid, and hybrid systems.As of June 2025, it operates four manufacturing facilities across Greater Noida, Parwanoo, Bawal, and Dadri, with a combined capacity of 2,782 MW for solar panels and inverters and 1,863 MWh for batteries.
The company’s products are widely distributed across India through 725 distributors, 5,546 dealers, and 1,100 exclusive “Solar Shoppe” outlets. With nearly 1,600 MW of inverters supplied — representing around 10% of India’s rooftop solar capacity — and a 15.5% share in the domestic solar battery market, Fujiyama has built a strong footprint in the renewable energy space.
Use of Proceeds
The IPO proceeds will primarily fund the establishment of a new integrated facility in Ratlam, Madhya Pradesh, where the company plans to double capacity by adding 2 GW each for panels and inverters, and 2 GWh for lithium-ion batteries. Funds will also go toward debt repayment (Rs 275 crore) and general corporate purposes.
Financial health
Financially, the company has demonstrated remarkable performance. Revenue more than doubled from Rs 664 crore in FY23 to Rs 1541 crore in FY25, while EBITDA surged nearly five-fold from Rs 51.6 crore to Rs 2.48 crore. EBITDA margins improved from 7.8% to 16.1%, reflecting strong operating leverage. Profit after tax (PAT) rose six-fold to Rs 1,563 million, translating into a PAT margin of 10.2%.
Return ratios also strengthened sharply, with ROE at 39.4% and ROCE at 41%, signaling efficient capital use. The balance sheet remains healthy with a debt-to-equity ratio of 0.87x.
Analyst views
SMIFS highlighted that India’s rooftop solar capacity is expected to approach 100 GW in the coming years, driven by government incentives under the National Solar Mission and the PM Surya Ghar-Muft Bijli Yojana. Fujiyama Power is well-positioned to benefit from this growth, given its strong manufacturing base, integrated solutions, and trusted brands.
The brokerage noted that the company’s innovation-led approach and AI-driven customer engagement platforms enhance its competitive edge. Fujiyama’s proprietary rMPPT technology optimizes solar power extraction, while its advanced product portfolio — including high-efficiency TOPCon and MonoPerc bifacial panels, indigenous battery management systems, and hybrid inverters — reflects its commitment to R&D.
“Fujiyama Power offers a comprehensive and diversified product portfolio spanning the solar value chain. Its planned expansions at Ratlam and Dadri, along with strong execution capability and consistent growth, make it a compelling long-term play on India’s renewable energy transition,” the broker said.
Valuation
At the upper price band, Fujiyama Power is valued at a price-to-earnings multiple of 41x FY25 earnings and EV/EBITDA of 29.4x, which the brokerage considers reasonable given its growth trajectory and return profile. Peers such as Waaree Energies and Premier Energies trade at similar or higher multiples.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)